published by 77 meintjies street sunnyside private...
TRANSCRIPT
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Published by the dti, 2015
This document contains confidential and proprietary information. The dissemination, copying, disclosure, use of,
or taking of any action in reliance on the contents thereof, without the written consent of the dti, is strictly prohibited.
R93/2015
ISBN: 978-0-621-43452-1
PHYSICAL ADDRESS:
77 Meintjies Street
Sunnyside
0002
POSTAL ADDRESS:
Private Bag X 84
Sunnyside
Pretoria
Gauteng
0002
TELEPHONE NUMBER: 0861 843 843
FAX NUMBER: 0861 843 888
E-MAIL: [email protected]
WEBSITE: www.thedti.gov.za
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Table of Contents
1. Abbreviations and Acronyms ........................................................................................................................... 4
2. Foreword by the Minister.................................................................................................................................. 7
3. Overview by the Director-General .................................................................................................................. 11
Official sign-off ......................................................................................................................................................... 14
Part A: Strategic Overview ....................................................................................................................................... 15
1. Vision .............................................................................................................................................................. 15
2. Mission ........................................................................................................................................................... 15
3. Values............................................................................................................................................................. 15
4. Strategic Outcome-Oriented Goals ................................................................................................................ 15
5. Strategic Objectives ....................................................................................................................................... 15
4. Legislative and Other Mandates .................................................................................................................... 16
5. Future Policy Development ............................................................................................................................ 20
6. Recent Court Rulings ..................................................................................................................................... 20
7. Organisational Structure ................................................................................................................................ 22
8. Situational Analysis ........................................................................................................................................ 23
8.1 Economic Context ......................................................................................................................................... 23
8.2 Performance environment .............................................................................................................................. 26
8.3 Organisational environment ........................................................................................................................... 27
8.4 Description of the Strategic Planning Process............................................................................................... 29
9. Strategic Outcome-Oriented Goals ................................................................................................................ 30
10 Financial Forecasting (Expenditure Estimates) ............................................................................................. 31
Part B: Strategic Objectives and Programme Description ................................................................................. 39
11 Strategic objectives ........................................................................................................................................ 39
11.1 Programme 1: Administration ..................................................................................................................... 39
11.2 Programme 2: International Trade and Economic Development ............................................................... 40
11.3 Programme 3: Special Economic Zones and Economic Transformation .................................................. 41
11.4 Programme 4: Industrial Development....................................................................................................... 42
11.5 Programme 5: Consumer and Corporate Regulation ................................................................................ 43
11.6 Programme 6: Incentive Development and Administration ........................................................................ 44
11.7 Programme 7: Trade and Investment South Africa.................................................................................... 46
12 Asset Management Plan ................................................................................................................................ 47
13 Information Technology Plan ......................................................................................................................... 47
13.1 ICT Objectives ............................................................................................................................................ 47
13.2 Information Management ........................................................................................................................... 47
13.3 Key ICT Projects ......................................................................................................................................... 47
14 Strategic Risk Management ........................................................................................................................... 48
15 Service Delivery Improvement Plan ............................................................................................................... 49
16 Public Entities Reporting to the Minister ........................................................................................................ 50
17 Public-Private Partnership (PPP) ................................................................................................................... 54
18 Annexure A- Strategic Objectives and Technical Indicator Descriptors ........................................................ 54
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1. Abbreviations and Acronyms
TERM DEFINITION
AIS Automotive Investment Scheme
AGOA African Growth and Opportunity Act, 2000
B-BBEE Broad-Based Black Economic Empowerment
BEE Black Economic Empowerment
BPS Business Process Services
BRICS Brazil, Russia, India, China and South Africa
CIP Critical Infrastructure Programme
CIPC Companies and Intellectual Property Commission, a public entity reporting to the dti
COMESA Common Market for Eastern and Southern Africa
CRM Customer Relationship Management
CSIR Council for Scientific and Industrial Research
C-FTA Continental Free Trade Area
CT Companies Tribunal, a public entity reporting to the dti
CTCIP Clothing and Textiles Competitiveness Improvement Programme
DMR Department of Mineral Resources
DOE Department of Energy
DSBD Department of Small Business Development
DG Director-General
EAC East African Community
ECIC Export Credit Insurance Corporation SOC Ltd, a public entity reporting to the dti
EIP Enterprise Investment Programme
EMIA Export, Marketing and Investment Assistance
ENE Estimates of National Expenditure
EPA Economic Partnership Agreement
EU European Union
FDI Foreign Direct Investment
FTA Free Trade Agreement
GDP Gross Domestic Product
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TERM DEFINITION
ICT Information and Communication Technology
IDC Industrial Development Corporation, a public entity reporting to the Economic
Development Department
IDZs Industrial Development Zones
IMF International Monetary Fund
IP Intellectual Property
IPAP Industrial Policy Action Plan
ITAC International Trade Administration Commission
MBAP Mineral Beneficiation Action Plan
MCEP Manufacturing Competitiveness Enhancement Programme
MIP Manufacturing Incentive Programme
MTEF Medium-Term Expenditure Framework
MTSF Medium-Term Strategic Framework
NCA National Credit Act of 2005, as amended
NCC National Consumer Commission, a public entity reporting to the dti
NCR National Credit Regulator, a public entity reporting to the dti
NCT National Consumer Tribunal, a public entity reporting to the dti
NDP National Development Plan
NEDP National Exporter Development Programme
NEF National Empowerment Fund, a public entity reporting to the dti
NEPAD New Partnership for Africa’s Development
NGB National Gambling Board, a public entity reporting to the dti
NGP New Growth Path
NLB National Lotteries Board, a public entity reporting to the dti
NMISA National Metrology Institute of South Africa, a public entity reporting to the dti
NRCS National Regulator for Compulsory Specifications, a public entity reporting to the dti
ODG Office of the Director-General
PPP Public-Private Partnership
PPPFA Preferential Procurement Policy Framework Act
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TERM DEFINITION
PTA Preferential Trade Agreement
QLFS Quarterly Labour Force Survey
RISDP Regional Indicative Strategic Development Plan
RIA Regulatory Impact Assessment
SABS South African Bureau of Standards, SOC Ltd, a public entity reporting to the dti
SACU Southern African Customs Union
SADC Southern African Development Community
SANAS South African National Accreditation System, a public entity reporting to the dti
SDI Spatial Development Initiative
SDIP Service Delivery Improvement Plan
SEZ Special Economic Zone
SMME Small, Micro and Medium Enterprise
SOC State owned company
SONA State of the Nation Address
T-FTA Tripartite Free Trade Agreement
the dti The Department of Trade and Industry
WTO World Trade Organisation
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2. Foreword by the Minister
Minister of Trade and Industry, Dr Rob Davies
The President of the Republic of South Africa, Mr Jacob Zuma, defined radical socio-economic transformation as
‘transforming the structure of the economy through industrialisation, broad -based black economic empowerment,
and through boosting and expanding agriculture, manufacturing and beneficiating South Africa’s mineral wealth’.
Doing so will jump-start the economy and will ensure that we meet the National Development Plan (NDP) target
of 5% growth.
In order to meet the President’s call for radical economic transformation, the Department of Trade and Industry
(the dti) will strengthen its focus on industrialisation. However, South Africa’s unique socio-economic
characteristics require more than just faster industrial growth. Our history and its legacy demand inclusive growth
that will ensure the economic potential of every citizen is unlocked, that every citizen who can contribute to
building a better South Africa is given the opportunity and tools to do so, and that the fruit of higher rates of
economic growth are more equitably shared with all South Africans.
Faster and more inclusive growth demands bold and decisive action by Government. While the Industrial Policy
Action Plan (IPAP) remains the central thrust of the work of the dti, the policy levers to achieve its goals have
been substantially expanded. Government procurement and beneficiation of South Africa’s mineral wealth are
priority policy interventions, which will be used to leverage the economic capabilities of both the private and
public sectors to support industrialisation.
Government’s plans to use its considerable procurement spend to support local enterprises with the target of
75% local content by 2019 were announced by the President during the State of the Nation speech in June 2014.
Government procurement has been widely used as a tool of industrial policy across the world and the dti will
work closely with procuring entities and the private sector to ensure that the 75% local content target is achieved
through the development of deeper industrial capabilities. the dti will encourage both foreign and domestic
investors to locate production in South Africa to respond to the substantial procurement opportunities associated
with Government’s infrastructure build programme.
In addition, the dti will over the course of the medium term period, develop a focused incentive programme to
support supplier development and in particular black industrialists. However, the private sector will need to play
its part and Government, through the Presidential Business Working Group, will be calling upon the top 80
Johannesburg Stock Exchange-listed companies to match Government’s 75% local content target. These
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commitments are essential to the success of industrial policy and will contribute to reducing South Africa’s current
account deficit.
The President in his 2015 State of the Nation Address (SONA) further announced the nine-point plan comprising
a big push of simultaneous actions in key strategic areas and at scale to ignite economic growth. The nine-point
plan includes advancing beneficiation and adding value to South Africa’s mineral wealth; more effective
implementation of a higher impact industrial policy action plan, encouraging private sector investment and
resolving the energy challenge. the dti is leading the development and implementation of three areas of the nine-
point action plan; advancing beneficiation and adding value to our mineral wealth, industrial policy action plan
and encouraging private sector investment.
Beneficiating South Africa’s mineral wealth is essential to accelerating economic growth, reducing dependence
on volatile primary mineral exports and improving the current account. A growth dynamic that is based on the
mining and export of low value-added primary commodities is neither desirable nor sustainable. Adding value to
our mineral resources is essential to breaking the subservient, quasi-colonial international relationship, which
characterises South Africa’s, and indeed most of the African continent’s export patterns. Government is
committed to increasing the level of local value addition to South Africa’s mineral resources. This will be done
through designation; where a percentage of production of certain strategic minerals will be made available in
requisite quantities, qualities, timeframes and a price arrangement supportive of local beneficiation.
In addition, our interventions will include all relevant industrial policy levers captured in a Mineral Beneficiation
Action Plan (MBAP) which will be incorporated into the 2015/16 IPAP which will be launched in April 2015. Clear
targets for localisation of capital goods with a medium-term target of 70% and expansion of current support
measures to attract downstream value-adding manufacturers will be set. To facilitate a coordinated approach in
implementing the MBAP an inter-departmental task team made up of the departments of Trade and Industry,
Mineral Resources, Science and Technology, Economic Development, Public Enterprises, Department of Energy
(DoE), National Treasury (NT) and Transport will be established.
the dti’s investment and competitiveness enhancement incentives, such as the Enterprise Investment
Programme EIP, the Automotive Investment Scheme (AIS), the Clothing and Textiles Competitiveness
Improvement Programme (CTCIP), and the Manufacturing Competitiveness Enhancement Programme (MCEP)
are experiencing high rates of uptake by the private sector and are playing an important role in supporting private
sector investment levels during this time of global instabili ty. With the South African fiscus likely to remain
constrained over the medium term, we will need to use our incentives more strategically as we continue to ensure
that public funds support economic development that is sustainable, creates jobs and contributes to black
economic empowerment.
The rapid rollout of Special Economic Zones (SEZs) will be a key priority in the coming years. The SEZ
Programme will boost private sector investment in the industrial sector through the provision of custom ised
incentives for enterprises located in SEZs. Currently, we expect to be able to develop up to 10 SEZs over the
next few years, with an appropriate provincial spread and due regard to the economic potential of specific regions
of South Africa. The implementation of the SEZ Act will be made possible through the promulgation of SEZ
regulations and the establishment of institutional mechanisms such as the SEZ Advisory Board to help drive this
process, as well as the introduction of support measures such as the One-Stop-Shop model and the SEZ Fund.
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If South Africa is to achieve inclusive growth, stronger and more direct efforts will need to be made to broaden
participation in the economy. This will include the implementation of the Broad-Based Black Economic
Empowerment (B-BBEE) Amendment Act, 2013 (Act No.46 of 2013), together with the revised Codes of Good
Practice, and the establishment of an institution that will be charged with the monitoring of B-BBEE. The
conditionalities which apply to the dti’s incentive schemes and the introduction of dedicated support for black
industrialists and supplier development are intended to ensure that Black Economic Empowerment (BEE) takes
its rightful place as a lever of inclusive economic growth.
South Africa has played an important role in setting rules for international trade, particularly through multilateral
agencies such as the World Trade Organisation (W TO). The priority that the dti places on these activities stems
from the need to open export markets because South Africa’s domestic economy is relatively small compared to
other developing and developed countries. South Africa’s participation in the Brazil , Russia, India, China and
South Africa (BRICS) structure has raised the country’s profile as an emerging economy in the world. The BRICS
Trade and Investment Cooperation Framework was adopted during the third BRICS Trade Ministers’ meeting
held in South Africa in 2013. We see enormous opportunities for South African firms in the on-going engagement
with BRICS members to structure new kinds of trade and investment agreements that foster complementarities
and cooperation in the industrial, agricultural and service sectors, and avoid destructive competition.
the dti plays a prominent role in advancing trade and economic integration in Africa. Within the Southern African
Customs Union (SACU), a five-point plan was designed and implemented, and SACU maintains unified positions
in trade negotiations. Work will be continued to develop South African Development Community (SADC)
standards to address non-tariff barriers (NTBs) that impede trade. the dti has also engaged in the Tripartite Free
Trade Area (T-FTA) negotiations, which seek to establish a free trade area that incorporates SADC, the Common
Market for Eastern and Southern Africa (COMESA) and the East African Community (EAC). The next phase in
the negotiations will focus on the exchange of tariff concessions and finalising legal texts.
With Africa increasingly seen as the next growth frontier, South Africa is well positioned to benefit from the high
growth rates expected in countries across the continent. The work that the dti initiated more than five years ago
to reposition South African firms to trade with new growth poles in East and South Asia as well as Af rica has
begun to pay dividends. South Africa’s trade profile has improved particularly in relation to Africa , with South
African exports dominated by value-added products. To fully develop the market opportunities for local
manufacturers and investors, the dti will create dedicated Export Councils focused on the African market. We will
also improve alignment between the Export Credit Insurance Corporation (ECIC) and South African companies
wishing to export to Africa to ensure that a full suite of appropriate support measures is available to capital
equipment exporters who should be benefiting from the significant infrastructure build programmes across the
continent.
the dti is committed to creating an enabling environment that will facilitate investment, job creation and growth.
Appropriately calibrated and enforced regulations provide business with certainty and a stable business
environment. Regulations are also essential to reducing the harmful effects of illicit trade, un-registered
businesses and irregular cash flows which may constitute money laundering.
the dti will be channelling its efforts and resources towards conducting Regulatory Impact Assessments on
specific policies. This will include a cost benefit analysis, monitoring and evaluation, and market research on:
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The Companies Amendment Bill to effect further amendments to the principal Act so as to resolve certain issues
pertaining to the practical application of the Act;
The Gambling Amendment Bill to effect necessary amendments to the principal Act; The Copyright Amendment
Bill to amend the principal Act so as to redress certain statutory measures relating to the protection of copyright;
The Liquor Amendment Bill to effect amendments to the principal Act so as to address certain inadequacies; and
The Licensing of Businesses Bill to, in consultation with provinces, provide a comprehensive legislative framework
so as to enhance the manner in which commercial and business activities are conducted.
These priority areas for the dti will contribute to realising South Africans’ vision of a more equitable and inclusive
economy.
Dr Rob Davies, MP
Minister of Trade and Industry
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3. Overview by the Director-General
Director-General, Lionel October
Twenty one years into our journey towards full-scale industrialisation, the dti is committed to implementing
Government policies through strengthened efforts to address economic challenges and to respond to
unemployment, poverty and inequality in support of the National Development Plan. the dti will ensure that the
21 priorities under-pinned in the Medium Term Strategic Framework (MTSF) in support of Outcome 4: Decent
employment through inclusive growth; Outcome 7: Vibrant, equitable, sustainable rural communities contributing
towards food security for all; and Outcome 11: Create a better South Africa and a better world are realised over
the medium term through the implementation of a higher impact IPAP.
the dti is committed to the nine-point plan referenced in the SONA. There is special emphasis on beneficiation
and adding value to our mineral wealth, the IPAP and encouraging private sector investment with consistent
focus on growing the dynamism, competitiveness and labour-absorbing capacity of the manufacturing sector.
One of the key priorities is the MBAP, modelled on the Industrial Policy Action Plan which aims to ensure that the
focus on five mineral value-chains (iron ore and steel, titanium, platinum group metals, precious metals and
jewellery as well as and mining inputs) are prioritised. the dti envisages that in order to successfully support
beneficiation the establishment of plants close to the mineral deposits will be promoted and investors will be
incentivised through the SEZ Programme.
The focus will be on the proclamation of 10 SEZs over the medium term with the aim of increasing the export of
value-added commodities, promoting regional economy and creating employment opportunities. There are
several categories of SEZs; Industrial Development Zones (IDZs), Free Ports, Free Trade Zones and Sector
Development Zones. The most recent designation of an IDZ was the Dube Trade Port (DTP IDZ) in Durban,
KwaZulu-Natal.
the dti mandate to stimulate and facilitate the development of sustainable, competitive enterprises through the
efficient provision of various incentives will be materialised by more than 60% of the budget committed towards
increasing manufacturing competitiveness, broadening participation and supporting the services industry to
increase investment to qualifying private-sector partners.
The department’s MCEP supports enterprise competitiveness and job retention. Manufacturing companies are
provided with financial support to upgrade their facilities, processes and products and to upskill their workers.
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Over the medium term, the department expects to assist 1 450 companies through the MCEP with financial
support.
the dti’s Business Process Services (BPS) Programmes continue to aim to grow investments that service the off-
shore market and increase employment; particularly of youth. In the past financial year, investments worth
R541.4 million were secured from the BPS Incentive Programme, with more than 5 000 jobs created. The
recently reviewed guidelines aim to increase the domestic market’s capacity and South Africa’s market share as
a global destination for off-shored business process with 7 500 jobs expected to be created over the next three
years.
the dti remains a destination of choice for foreign investment as evidenced by the investment pipeline of R60
billion in the previous financial year. Key multinational companies have looked to the South African shore for a
unique value proposition because South Africa provides an attractive African investment destination.
The Incubator Support Programme, while it is a relatively new concept in South Africa, is regarded globally as
essential for economic growth and industrial development. It aims to establish 260 incubators by the 2016/17
financial year.
the dti will continue with the implementation of the National Exporter Development Programme (NEDP) which
aims to increase the export of value-added products and to subsequently contribute to employment and
economic growth.
In order to promote value-added exports and to ensure that intra-BRICS trade is more sustainable, the
department will continue to advance the trade and investment work of the BRICS Contact Group for Economic
and Trade Issues (CGETI). Furthermore, BRICS will continue to strengthen South Africa’s opportunities for trade,
economic development and investment partnership into the untapped potential markets in Africa.
the dti will continue to support the African Growth Opportunity Act (AGOA) as a country beneficiary and ensure
that its participation contributes to economic transformation in order to promote regional integration. the dti will
prepare inputs for the T-FTA tariff offer and legal texts in support of South Africa's trade negotiating agenda.
the dti will continue with the implementation of the B-BBEE Amendment Act through the establishment of the B-
BBEE Commission. The Commission will ensure among others, adherence to the Act and Codes of Good
Practice as well as strengthening and fostering collaboration between the public and private sectors in order to
promote and safeguard the objectives of B-BBEE.
the dti will develop policies, review regulations and draft legislation on wide ranging matters including the
Gambling Amendment Bill.
In support of Outcome 12: An efficient, effective and development-oriented public service, the dti remains
committed to the fulfilment of Government priorities through continuous improvement and enhanced service
delivery hinged on the values of operational and intellectual excellence as well as quality relationships.
the dti will continue to strengthen service delivery through implementation of the Rea Aga programme which
strives to enhance homogenous organisational culture in pursuit of effective implementation of the dti plans.
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Furthermore, the service delivery improvement plan details the dti’s commitment to improving turnaround times
of key services. There is also a special focus to ensure that more women are employed as senior managers.
It is with renewed optimism, that we present the dti’s plans for the medium term. The department and its
dedicated staff remain committed to the vision of inclusive growth and look forward to contributing to a
prosperous economy for all.
Mr Lionel October
Director-General
Official sign-off
It is hereby certified that this Strategic Plan:
Was developed by the management of the Department of Trade and Industry under the guidance of the Minister
Dr Rob Davies;
Takes into account all the relevant policies, legislation and other mandates for which the Department of Trade
and Industry is responsible; and
Accurately reflects the performance targets which the Department of Trade and Industry will endeavour to
achieve over the period of 2015-2020.
Mr Shabeer Khan Signature:
Chief Financial Officer
Ms Jodi Scholtz Signature:
Group Chief Operating Officer
Mr Lionel October Signature:
Accounting Officer
Approved by:
Minister Dr Rob Davies, MP Signature:
Executive Authority
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Part A: Strategic Overview
Vision
A dynamic industrial, globally competitive South African economy, characterised by inclusive growth and
development, decent employment and equity, built on the full potential of all citizens.
Mission
the dti’s Mission is to:
• Promote structural transformation, towards a dynamic industrial and globally competitive economy;
• Provide a predictable, competitive, equitable and socially responsible environment, conducive to investment,
trade and enterprise development;
• Broaden participation in the economy to strengthen economic development; and
• Continually improve the skills and capabilities of the dti to effectively deliver on its mandate and respond to
the needs of South Africa’s economic citizens.
Values
the dti Values are:
Operational excellence – service delivery standards, international best practice, Batho Pele Principles,
continuous improvement
Intellectual excellence – continuous shared learning, innovation, relevant knowledge and skills improvement
Quality relationships – improved and continuous communication, honesty, respect, integrity, transparency,
professionalism, ownership, leadership, teamwork
Strategic Outcome-Oriented Goals
• Facilitate the transformation of the economy to promote industrial development, investment, competitiveness
and employment creation;
• Build mutually beneficial regional and global relations to advance South Africa’s trade, industrial policy and
economic development objectives;
• Facilitate broad-based economic participation through targeted interventions to achieve more inclusive
growth;
• Create a fair regulatory environment that enables investment, trade and enterprise development in an
equitable and socially responsible manner; and
• Promote a professional, ethical, dynamic, competitive and customer-focused working environment that
ensures effective and efficient service delivery.
Strategic Objectives
Grow the manufacturing sector to promote industrial development, job creation, investment and exports
Improved conditions for consumers, artists and opening up of markets for new patents players
Strengthened capacity to deliver on the dti mandate
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4. Legislative and Other Mandates
Name of Act Purpose
1. Abolition of the Fuel Research
Institute and Coal Act, 1983 (Act
No. 30 of 1983)
To repeal the Fuel Research Institute and Coal Act, 1963, and to
provide for the vesting of the assets and liabilities, and the transfer of
the employees of the fuel Research Institute to the Council for
Scientific and Industrial Research (CSIR).
2. Accreditation for Conformity
Assessment, Calibration and
Good Laboratory Practice Act,
2006 (Act No. 19 of 2006)
To provide for an internationally recognised and effective accreditation
and monitoring system for the Republic of South Africa by establishing
SANAS as a juristic person; to recognise SANAS as the only
accreditation body in the Republic for the accreditation of conformity
assessment and calibration as well as monitoring of good laboratory
practice.
3. Alienation of Land Act, 1981
(Act No. 68 of 1981)
To regulate the alienation of land in certain circumstances and to
provide for matters connected therewith.
4. Broad-Based Black Economic
Empowerment Act, 2003
(Act No. 53 of 2003) as amended
To establish a legislative framework for the promotion of black
economic empowerment; to empower the Minister to issue Codes of
Good Practice and publish transformation charters; to establish the
Black Economic Empowerment Advisory Council; and to provide for
matters connected therewith.
5. Companies Act, 2008
(Act No. 71 of 2008) as amended
To provide a new legislative framework for the incorporation,
registration and management of companies; to establish a Companies
and Intellectual Property Commission (CIPC) and Companies
Tribunal; and to provide for matters connected therewith.
6. Consumer Protection Act, 2008
(Act No. 68 of 2008)
To promote a fair, accessible and sustainable marketplace for
consumer products and services, and for that purpose to establish
national norms and standards relating to consumer protection; to
provide for improved standards of consumer information; to prohibit
certain unfair marketing and business practices; to promote
responsible consumer behaviour; to promote a consistent legislative
and enforcement framework relating to consumer transactions and
agreements; to establish the National Consumer Commission (NCC);
and to repeal certain laws.
7. Convention on Agency in the
International Sale of Goods Act,
1986 (Act No. 4 of 1986)
To provide for the application in the Republic of the Convention on
Agency in the International Sale of Goods adopted by the
International Institute of the United Nations Organisation for the
unification of Private Law.
8. Copyright Act, 1978
(Act No. 98 of 1978)
To regulate copyright in respect of, inter alia, artistic works, dramatic
works, computer programmes, musical and literary works.
9. Counterfeit Goods Act, 1997
(Act No. 37 of 1997)
To strengthen prohibitions on trade in counterfeit goods; confer
powers on inspectors and the police to enter and search premises,
with and without a warrant; and confer powers on Customs and
Excise to seize and detain suspected counterfeit goods.
10. Designs Act, 1993 To consolidate the law relating to designs; to provide for the
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Name of Act Purpose
(Act No. 195 of 1993) registration of designs; and to delineate the rights pertaining thereto.
11. Export Credit and Foreign
Investments Insurance Act, 1957
(Act No. 78 of 1957)
To promote trade with countries outside the Republic by providing for
the insurance on behalf of the Government of the Republic of
contracts in connection with export transactions, investments and
loans or similar facilities connected with such transactions.
12. Expropriation (Establishment of
Undertakings) Act, 1951
(Act No. 39 of 1951)
To provide for the expropriation of land and the taking of the right to
use land temporarily for or in connection with the objects or
undertakings of national importance.
13. Housing Development Schemes
for Retired Persons Act, 1988
(Act No. 65 of 1988)
To regulate the alienation of certain interests in housing development
schemes for retired persons and to provide for matters connected
therewith.
14. Intellectual Property Laws
Rationalisation Act, 1996
(Act No. 107 of 1996)
To provide for the integration of intellectual property rights subsisting
in the ex-TBVC (Transkei, Bophuthatswana, Venda and Ciskei) into
the national system, to extend the South African intellectual property
rights legislation throughout the Republic and to repeal certain
intellectual property laws.
15. International Convention for Safe
Containers Act, 1985
(Act No. 11 of 1985)
To provide for the application in the Republic of the International
Convention for Safe Containers so as to maintain a high level of
safety of human life in the handling, stockpiling and transporting of
containers.
16. Legal Metrology Act, 2014 (Act
No. 9 of 2014)
To provide for the administration and maintenance of legal metrology
technical regulations in order to promote fair trade and to protect
public health and safety and the environment; and to provide for
matters connected therewith.
17. Liquor Act, 2003
(Act No. 59 of 2003)
To establish national norms and standards to maintain economic unity
within the liquor industry; to provide for essential national standards
and minimum standards required for the rendering of services; to
provide for measures to promote co-operative government in the area
of liquor regulation; and to provide for matters connected therewith.
18. Lotteries Act, 1997
(Act No. 57 of 1997) as amended
To establish a National Lotteries Board and regulate and prohibit
lotteries and sports pools.
19. Manufacturing Development Act,
1993 (Act No. 187 of 1993)
To establish the Manufacturing Development Board; to provide for the
establishment of programmes for manufacturing development; and for
matters incidental thereto.
20. Measurement Units and
Measurement Standards Act,
2006 (Act No. 18 of 2006)
To provide for the use of measurement units of the International
System of Units; to provide for the designation, keeping and
maintenance of national measurement units and standards; to provide
for the establishment and functions of the National Metrology Institute;
and to provide for the repeal of certain laws.
21. Merchandise Marks Act, 1941
(Act No. 17 of 1941)
To make provision concerning the marking of merchandise and of
coverings in or with which merchandise is sold and the use of certain
words and emblems in connection with business.
22. National Building Regulations and To provide for the promotion of uniformity in the law relating to the
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Name of Act Purpose
Building Standards Act, 1977 (Act
No. 103 of 1977)
erection of buildings in the areas of jurisdiction of local authorities and
for the prescribing of building standards.
23. National Credit Act, 2005
(Act No. 34 of 2005) as amended
To promote a fair and non-discriminatory marketplace for access to
consumer credit and for that purpose to provide for the general
regulation of consumer credit and improved standards of consumer
information.
24. National Empowerment Fund Act,
1998 (Act No. 105 of 1998)
To establish a trust to promote and facilitate ownership of income-
generating assets by historically disadvantaged persons, particularly
assets in state-owned enterprises made available at a discount as
part of restructuring programmes; gives powers to the trust to enable
it to establish sub-trusts and investment companies to promote black
economic empowerment.
25. National Gambling Act, 2004
(Act No. 7 of 2004)
To provide for the co-ordination of concurrent national and provincial
legislative competence over matters relating to casinos, racing,
gambling and wagering; and to provide for the continued regulation of
those matters; for that purpose to establish certain uniform norms and
standards applicable to national and provincial regulation and
licensing of certain gambling activities; to provide for the creation of
additional uniform norms and standards applicable throughout the
Republic; to retain the National Gambling Board; to establish the
National Gambling Policy Council; to repeal the National Gambling
Act, 1996; and to provide for matters incidental thereto.
26. National Regulator for
Compulsory Specifications Act,
2008 (Act No. 5 of 2008)
To provide for the administration and maintenance of compulsory
specifications in the interest of public safety, health and environmental
protection; and to provide for the establishment of the National
Regulator for Compulsory Specifications.
27. National Supplies Procurement
Act, 1970 (Act No. 89 of 1970)
To empower the responsible Minister to manufacture, produce,
acquire, hire or import goods; to acquire, hire or supply services; and
to exercise control over goods and services and the manufacture,
production, processing and treating of goods; and to provide for the
establishment and administration of a National Supplies Procurement
Fund.
28. Non-Proliferation of Weapons of
Mass Destruction Act, 1993
(Act No. 87 of 1993)
To provide for control over weapons of mass destruction and to
establish a council to control and manage matters relating to the
proliferation of such weapons in the Republic; to determine its
objectives and functions; and to prescribe the manner in which it is to
be managed and controlled.
29. Patents Act, 1978
(Act No. 57 of 1978)
To provide for the registration and granting of letters, patents for
inventions and for the rights of a patentee.
30. Performers Protection Act, 1967
(Act No. 11 of 1967)
To provide for the protection of the rights of performers of literary and
artistic works.
31. Property Time Sharing Control
Act, 1983 (Act No. 75 of 1983)
To regulate the alienation of time-sharing interests pursuant to
property time-sharing schemes.
19
Name of Act Purpose
32. Protection of Businesses Act,
1978 (Act No. 99 of 1978)
To restrict the enforcement in the Republic of certain foreign
judgments, orders, directions, arbitration awards and letters of
request; to prohibit the furnishing of information relating to businesses
in compliance with foreign orders, directions or letters of request.
33. Rationalisation of Corporate Laws
Act, 1996 (Act No. 45 of 1996)
To provide that certain corporate laws shall apply throughout the
Republic of South Africa, to repeal certain corporate laws and provide
for the retrospective incorporation of certain putative close
corporations.
34. Registration of Copyright in
Cinematograph Films Act, 1977
(Act No. 62 of 1977)
To provide for the registration of copyright in cinematograph films and
for matters connected therewith.
35. Share Blocks Control Act, 1980
(Act No. 59 of 1980)
To control the operation of share block schemes, i.e. any scheme in
terms of which a share, in any manner whatsoever, confers a right to
or an interest in the use of immovable property.
36. Space Affairs Act, 1993
(Act No. 84 of 1993)
To provide for the establishment of a Council to manage and control
certain space affairs in the Republic; to determine its objects and
functions; and to prescribe the manner in which it is to be managed
and controlled.
37. Special Economic Zones Act, 2014
(Act No. 16 of 2014) [Enacted on
19 May 2014 but has not yet
commenced]
To provide for the designation, development and management of
SEZs; to establish an advisory board and a fund; to regulate the
issuing, suspension, withdrawal and transfer of permits; and to
provide for matters connected therewith.
38. Standards Act, 2008
(Act No. 8 of 2008)
To provide for the development, promotion and maintenance of
standardisation and quality in connection with commodities and the
rendering of related conformity assessment services; and for that
purpose to provide for the continued existence of the South African
Bureau of Standards (SABS), as the peak national institution; to
provide for the repeal of the Standards Act, 1993; and to provide for
transitional arrangements.
39. Sugar Act, 1978
(Act No. 9 of 1978)
To consolidate and amend the laws relating to the sugar industry; and
to provide for matters incidental thereto.
40. Temporary Removal of
Restrictions on Economic
Activities Act, 1986
(Act No. 87 of 1986)
To empower the President to suspend temporarily laws or conditions,
limitations or obligations there under, if their application unduly
impedes economic development or competition.
41. Trade Marks Act, 1993
(Act No. 194 of 1993)
To consolidate the law relating to trademarks and to provide for the
registration of trademarks, certification of trademarks and collective
trademarks and for the protection of rights relating thereto.
43. Unauthorised Use of Emblems Act,
1961 (Act No. 37 of 1961)
To provide for the continued operation of certain laws relating to the
use of certain emblems and representations, and to extend the scope
of such laws.
20
The following legislation was transferred to the Department of Small Business Development (DSBD) according to
Section 97 of the Constitution of the Republic of South Africa, 1996 upon proclamation:
Close Corporations Act, 1984 (Act No. 69 of 1984)
National Small Enterprise Act,1996 (Act No.102 of 1996)
Co-operatives Act, 2005 (Act No.14 of 2005)
5. Future Policy Development
The development of the Intellectual Property (IP) Amendment Bill aims to harmonise IP legislation and laws with
the intention of reviewing and amending the different legislation falling under IP laws, i.e. the Designs Act, Trade
Marks Act, Counterfeit Goods Acts, Patents Act and Performers Protection Act.
6. Recent Court Rulings
6.1 Lancelot Lenono Manala vs. The Minister of Trade and Industry and 11 others
Issue: The first and second defendants contended that the 162(2) (c) of the Companies Act is unconstitutional in
that it offends sections 10 (the right to dignity), 22 (freedom of trade) and/or 34 (access to courts) of the
Constitution of the Republic of South Africa, 1996.
Order: The court found that aforesaid section did not infringe upon the defendants’ rights to freedom of Trade
and Dignity and was therefore not unconstitutional. the dti was thus successful defending the constitutionality of
section 162(5) (2).
6.2 Farm Frites International B.V vs. The International Trade Commission of South Africa (ITAC) and
five others
Issue: The applicant brought an urgent application in the North-Gauteng High Court against the International
Trade Administration Commission (ITAC), the Minister and four other respondents. The purpose of the
application was to review and set aside an alleged decision of ITAC’s refusal to accep t certain submissions and
information submitted by Farm Frites to ITAC on the investigation by the latter into allegations of dumping. the dti
sought not to oppose the above application and file a notice to abide on the basis that firstly, the decision sought
to be challenged fell within the sole mandate of ITAC and secondly, the Minister would be required to consider
the findings and recommendations of ITAC at a later stage and make a decision. the dti filed a confirmatory
affidavit in support of ITAC’s answering affidavit confirming that the granting of the interdict sought by Farm Frites
in this matter would compromise the finalisation of the investigation by the Minister and may hamper and frustrate
the Minister in the execution of his executive functions.
Order: The urgent application was heard in the North Gauteng High Court on 12 May 2014. After hearing
argument from all parties, the court made an order dismissing the applicant’s case with costs. The policy
implication of the court order is that the Minister may proceed to execute his executive functions in terms of the
International Trade Administration Act, 2002 (Act No. 71 of 2002) unhindered. When dealing with
recommendations from ITAC, the Minister makes an independent evaluation of the matter. Apart from the
21
recommendation from ITAC, the Minister is required and entitled to consider policy considerations in making
decisions.
22
7. Organisational Structure
23
8. Situational Analysis
8.1 Economic Context
the dti operates within a global economic context and as a consequence developments in the global economy
have a profound impact on the ability of the Government to meet its strategic objectives of inter alia rising
economic growth, job creation and transformation of the economy.
Figure 1: World Output (Forecast 2015 – 2017)
Source: IMF, 2015, World Economic Outlook
The recent decline in the oil price and the strengthening economic performance by the United States (US) have
boosted global economic activity marginally with global growth accelerating to 3.6% in the third quarter from 3.3%
in the second quarter of 2014. In the US, real GDP increased at an annualised rate of 5.0% in the third quarter
compared to 4.6% recorded in the second quarter of 2014.
However, the outlook for the global economy remains uncertain primarily due to continued weakness in the euro
area and softer growth in many developing countries, including China. As a result, in January 2015 the
International Monetary Fund (IMF) made a downward revision of its global growth projection. Global growth is
now estimated at 3.5% and 3.7% in 2015 and 2016 respectively, primarily due to weak economic conditions in
Russia and the euro area. The IMF expects growth in the emerging market and developing economies to remain
relatively stable in 2015 at 4.3% and will slightly increase to 4.7% in 2016. Real GDP growth in China slowed
from 7.5% in the second quarter to 7.3% in the third quarter of 2014, its slowest growth in the last five years.
The impact of sharply lower oil prices is expected to boost growth by increasing purchasing power and domestic
demand in oil-importing countries such as South Africa. The impact will likely be seen in lower petrol and food
prices which boost the purchasing power of private consumers, although the depreciation of the exchange rate
may offset some of these gains.
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2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Perc
ent
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World United States
24
Domestic Environment
Figure 2: Gross Domestic Product at seasonally adjusted 2010 prices
Source: SARB, 2014, Quarterly Bulletin.
The South African economy performed much better in the third quarter by registering a real economic growth rate
of 1.4% compared to 0.5% (annualised and seasonally adjusted) in the second quarter. This positive growth
performance was underpinned by the contributions of the finance, real estate and business services; wholesale,
retail and motor trade; and catering and accommodation sectors.
Within the productive sectors, positive growth of 8.2% was recorded by the agriculture, forestry and fishing
industry while mining and quarrying recorded 1.6% growth. The manufacturing sector contracted 3.4% in the third
quarter following a 4.0% contraction in the second quarter. Lower production in basic iron and steel, non-ferrous
metal products, metal products and machinery; petroleum, chemical products, rubber and plastic products; and
wood and wood products were the main contributors to negative growth. In the short-term, the sector is likely to
remain depressed due to the negative impact of electricity constraints, rail and port inefficiencies as well as
subdued international demand in Europe and China.
Employment
The SA economy continues to create employment. According to the Statistics South Africa (Stats SA) Quarterly
Labour Force Survey, employment increased by 203,000 year-on-year and by 141,000 quarter-on-quarter. The
largest employment gains were in the construction, community and social services and agriculture sectors.
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25
Trade
Figure 3: Trade with the rest of the world
Source: the dti, 2015, Annual Trade Bulletin.
In the third quarter of 2014, South Africa’s total exports recorded an increase of 6.9% reaching R299 billion
following a 2% decline in the previous quarter. The growth in exports is attributed to higher growth in the demand
of both goods and services.
During the third quarter, exports for agricultural products increased by 23% while manufacturing grew by 8.3%
and mining by 4%. Germany, Japan, Botswana and Namibia supported export growth. Demand for SA goods by
China and the US declined by 20% and 0.5% respectively. Imports grew by 7.9% supported by higher demand
for products from China, the US and Germany. Germany, Japan, Botswana, Namibia, India, United Kingdom,
United States, Belgium, China and Mozambique remain South Africa’s top 10 export partners.
The combination of a relatively fragile global outlook, limited domestic demand and the persistent trade deficit
suggests that SA is stuck in a ‘low-growth trap’. Escaping this trap requires a substantial global growth stimulus –
which appears unlikely – or concerted actions to create a stronger domestic growth dynamic. This will require
coordinated, purposeful interventions at a scale that can delive r ‘critical mass’. If transformation and inclusive
growth are the twin goals of national policy, there is no viable alternative to the state actively pursuing and driving
structural change in the SA economy.
In this regard, the NDP:
highlights the need for SA to develop a more competitive and diversified economy to meet growth and
job creation needs and check further deindustrialisation;
acknowledges that resources are either a curse or a blessing (this is dependent on the coherence of
policy and the resoluteness of implementation); and
recognises the need for measures to manage the Rand and sharply reduce the growing deficit on the
current account by maximising value addition in the mining sector and catalysing competitive production
for export in a diversified range of value-added manufactured products - both in traditional and new,
dynamic non-traditional sectors.
-100 000
-50 000
0
50 000
100 000
150 000
200 000
250 000
300 000
350 000
400 000
3Q 4Q 1Q 2Q 3Q
2013 2014
R b
illio
n
Total Exports Imports Trade Balance
26
These emphases are captured in the 2014-19 Medium-term Strategic Framework as ‘driving growth in the
productive sectors of the economy including manufacturing, agriculture and mining’ and provide the over-arching
framework for the work of the dti.
8.2 Performance environment
The next iteration of the IPAP to be launched at the beginning April 2015 will continue to serve as a catalyst for
reindustrialising the South African economy. Over the years we have seen key initiatives implemented in various
sectors and this included taking advantage of opportunities to regain domestic market share in areas such as
clothing, textiles, leather and footwear (CTLF) and agro-processing. In the CTLF sector, the CTCIP has stabilised
the sector and much progress can be seen since the launch of the programme.
Another notable accomplishment for the dti is the further designation of more sectors for local public
procurement; which include the instruction notes for cables, solar water heaters (swh), valves and boats and
electricity meters.
Currently, seven biofuels manufacturers have been licensed by DoE and an eighth potential manufacturer is in
the initial stages of licensing in the agro processing sector. Manufacturers are in four provinces; KwaZulu-Natal,
Eastern Cape, Free State and Gauteng.
As part of building mutually beneficial regional and global relations to advance South Africa’s trade, industrial
policy and economic development objectives, the Tripartite initiative is a key African-led project aimed at
promoting economies of scale, enabling competitiveness, diversification, fostering regional value-chains, intra-
regional trade and investment, and cross-border infrastructure. SA’s economic development success is
inextricably tied to Africa’s economic development. As Africa takes centre stage as the next growth frontier, the
dti will continue to play a prominent role in advancing trade and economic integration in Africa. The Tripartite
Free Trade Area (T-FTA) when concluded could substantially improve market access among African countries.
Over the course of 2013 and 2014, the dti contributed to defining the principles and modalities for the
negotiations, and prepared SA’s negotiating tariff offer as well as some of the key legal texts for an eventual
agreement.
The MBAP, which is currently in draft form, should be finalised by the end of the financial year. The department is
leading this process, which also involves the National Treasury, the Economic Development Department, the
Department of Mineral Resources (DMR) and the Department of Science and Technology.
The lengthy Economic Partnership Agreement (EPA) negotiations with the European Union (EU) to establish a
common trade in goods arrangement between SACU and the EU has been concluded. Significant gains have
been achieved.
BRICS has been instrumental in reducing poverty, unemployment, high levels of inequality and accelerating
economic empowerment.
The promulgation of the Broad-Based Black Economic Empowerment (B-BBEE) Amendment Act, 2013 (Act
No.46 of 2013) as well as the publishing of the B-BBEE Codes of Good Practice will go a long way in changing
27
the landscape with regard to empowerment. These initiatives will be strengthened by the establishment and
operationalisation of the Black Economic Empowerment Commission to ensure compliance with the legislation.
Economic participation will further be broadened through the implementation of the SEZs Act 2014, Act No. 16 of
2014, which makes provision for the establishment of an SEZ Advisory Board to ensure that SEZs are
established in various provinces to stimulate economic growth.
In enhancing the regulation of consumers and business, the department developed and/or amended various
legislations that are critical to promoting the development of the economy. Among them are the amendments to
the National Credit Act, 2005 which brought into being the credit amnesty wherein credit providers were
compelled to remove adverse credit records of consumers who have settled their debt on the one hand, whereas
on the other hand focusing on credit (cost of credit, cost of doing business, over indebtedness). The Lottery
Amendment Act, 2013 was signed into law and makes provision for broadened access to funding from the
National Lottery Distribution Fund to beneficiaries who have been previously disadvantaged as a result of the
existing criteria used to grant funding. Furthermore, the continued outcry about the consideration and approval of
applications will improve with the introduction of full-time members of distributing agencies to adjudicate
applications for funding. This is a step in the right direction given the previously lengthy waiting period for
applicants.
8.3 Organisational environment
At the end of December 2014, the dti had 1 392 permanent posts of which 96 were vacant resulting in a vacancy
rate of 7.03%. The reduction of the vacancy rate is still important and is closely monitored with various
interventions to remedy it. The promulgation of the DSBD resulted in the transfer of functions and staff from the
dti affecting approximately 180 posts and incumbents across seven divisions. the dti will continue rendering
corporate services functions to the DSBD until the handover is finalised by the 2015/16 financial year.
In order to assist with reducing the vacancy rate, emphasis was placed on managing the turnover rate through
retention and succession initiatives and a turnover rate of 5.3% was achieved as at 31 December 2014 in respect
of employees permanently appointed to the establishment (real turnover), implying that the retention rate is
94.7% which brings stability to the workforce.
Priorities such as the expansion of the SEZs, the focus on creating black industrialists and the establishment of
the B-BBEE Commission within the department require the resourcing of areas in the department that need to
focus on these aspects, and an organisational redesign exercise is foreseen. This will require reallocation of
resources as well as the creation of additional capacity.
The department will continue with its efforts to maintan an environment conducive for productive employees. The
Rea Aga (we are building) project which was rolled out in 2012 continues with great strides. A new set of values
has been developed and focuses on the living of these values through projects such as the improvement of day-
to-day relationships (Quality Relationships), Knowledge and Information Management (Intellectual Excellence)
and Operational Excellence. Behaviour indicators have been developed and implemented for SMS employees
and will be rolled out to employees below SMS level. Executive leadership coaching was introduced, outside
garden meeting venues were investigated and will be utilised.
28
With a very strong emphasis on the development of our employees, the focus will remain on functional training
locally and abroad. This includes training on SEZs, Clothing and Textiles capacity-building and Trade Policy
training through e-learning.
The department will continue to roll out programmes to develop a cadre of industrial economists through the
Certificate Programme in Economic Development Policy, the Honours qualification in Development Theory and
Policy, the Masters qualification in Development Theory and Policy and the Economic Policy Dialogue sessions.
The kind of exposure provided to employees of the dti through participation in functional programmes as well as
other training initiatives such as the Women Development Programme, support the notion that the Department is
an employer of choice.
29
8.4 Description of the Strategic Planning Process
The department embarked on rigorous strategic planning sessions at both divisional and Executive Board (ExBo)
level to identify key delivery areas that will ensure contribution to the National Development Plan. the dti also
participated in various forums established to discuss certain chapters of the NDP, supporting the following
outcomes:
Outcome 4: Decent employment through inclusive growth.
Outcome 7: Vibrant, equitable, sustainable rural communities contributing towards food security for all
Outcome 11: Create a better South Africa and a better world.
Outcome 12: An efficient, effective and development-oriented public service
In order to ensure that the department contributes towards the achievement of certain outputs that support the
above-mentioned outcomes, a number of key interventions were identified. Such interventions are responsive to
the outputs contained in the Medium Term Strategic Framework (MTSF) 2014-2019. The interventions cut across
various programmes of the department and are aligned to its five strategic outcome oriented goals.
the dti’s MTSF Interventions Linkage to Strategic
Outcome-Orientated Goals
Linkages to
Government
outcomes
1. Proclaim three SEZs
2. All IPAP interventions implemented – 250
projects implemented
3. IDC to fund two higher level beneficiation
projects
4. Develop MBAP and incorporate into IPAP
5. Increase use of local metals in South
African manufacturing
6. Increase localisation target to 75%
7. Develop options for stable and competitive
exchange rate
Facilitate transformation of the
economy to promote industrial
development, investment,
competitiveness and employment
creation
Outcome 4: Decent
employment through
inclusive growth
8. Export Council to develop African Export
Markets
9. Foreign Direct Investment (FDI) investment
pipeline of R50 billion
10. Economic diplomacy and pavilions
11. Seven investments and five trade promotion
projects
12. South Africa’s position on SADC RISDP
13. SACU development integration
14. Tripartite-Free Trade Agreement (T-FTA)
15. South Africa’s position on T-FTA and
Continental -FTA
Build mutually beneficial regional
and global relations to advance
South Africa’s trade, industrial
policy and economic
development objectives
Outcome 11: Create
a better South Africa
and a better world
30
the dti’s MTSF Interventions Linkage to Strategic
Outcome-Orientated Goals
Linkages to
Government
outcomes
16. 26 bilateral cooperation agreements in
Africa
17. Three to eight engagements on SDI projects
18. 59 bi-laterals with countries of the South
19. Five investors per district municipality
20. National Rural investment incentive
21. Develop Supplier Development Incentive for
procurement
Facilitate broad-based economic
participation through targeted
interventions to achieve more
inclusive growth.
Outcome 7: Vibrant,
equitable,
sustainable rural
communities
contributing towards
food security for all
9. Strategic Outcome-Oriented Goals
Strategic Goal 1 Facilitate the transformation of the economy to promote industrial development,
investment, competitiveness and employment creation
Goal Statement Contribution towards economic growth through the implementation of policies and
frameworks to promote industrialisation of the country and provide support
mechanisms to enable job creation, investment and competitiveness
Strategic Goal 2 Build mutually beneficial regional and global relations to advance South Africa’s
trade, industrial policy and economic development objectives
Goal Statement Ensure that trade and industrial policies are promoted in various global forums and
the country is positioned as one of the preferred investment destinations. This will
result in increased exportation of tradable goods and services as well as increased
competitiveness
Strategic Goal 3 Facilitate broad-based economic participation through targeted interventions to
achieve more inclusive growth
Goal Statement Broaden economic participation to ensure that previously marginalised groups are
brought into the mainstream of the economy and compete with the established
companies
Strategic Goal 4 Create a fair regulatory environment that enables investment, trade and enterprise
31
development in an equitable and socially responsible manner
Goal Statement Create an enabling environment which is conductive to both consumers and
business and remove the unnecessary regulatory burden which negatively impacts
on the economy
Strategic Goal 5 Create a professional, competitive and customer-focused working environment that
ensures effective and efficient service delivery
Goal Statement Capacitate the department to ensure that its legislative mandates are fulfilled and
service delivery is enhanced
10 Financial Forecasting (Expenditure Estimates)
Expenditure analysis
The National Development Plan’s long term vision for South Africa emphasises the role of accelerated, inclusive
economic growth that will reduce unemployment and inequality. This vision is further developed in the
Government’s 2014-2019 medium term strategic framework, in particular in outcome 4 (decent employment
through inclusive economic growth), outcome 7 (vibrant, equitable, sustainable rural communities contributing
towards food security for all), and outcome 11 (create a better South Africa, a better Africa and a better world).
These outcomes set out the responsibilities of the dti in relation to labour absorbing growth, increased
competitiveness, increased value added exports, strategic investment from targeted countries, and improved
trade and infrastructure development in Africa.
Over the medium term, the department will focus on manufacturing incentives, strengthening export capabilities,
industrial infrastructure investment, and localisation. Following the establishment of the Department of Small
Business Development, key functions related to small business and co-operatives have been transferred to that
department, resulting in a decrease in the dti’s budget over the medium term. Cabinet approved budget
reductions total R777 million over the medium term. R279.5 million will be effected on transfers to the SEZs
under the Incentive Development and Administration Programme. R279.4 million will be effected on transfers to
public entities, driven by their level of accumulated reserves, including a reduction of R113.4 million to transfers
to the South African Bureau of Standards.
Manufacturing incentives
The department provides incentives to industry through transfers to private enterprises. The transfers are
intended to enable and increase private investment to promote industrial development, investment,
competitiveness and employment creation in line with the department’s strategic goal of economic
transformation. Transfers over the medium term are projected at R17.2 billion, in the Incentive Development and
Administration Programme, the department’s largest spending programme. Incentives for manufacturing
development are projected at R10.2 billion over the medium term in the Manufacturing Incentives sub -
programme.
The department’s MCEP supports enterprise competitiveness and job retention. Manufacturing companies are
provided with financial support to upgrade their facilities, processes and products and to upskill their workers.
32
Over the medium term, the department expects to assist 1 450 companies through the MCEP with financial
support of R3.9 billion in the Manufacturing Incentives sub-programme.
The department supports the development and growth of the automotive industry through the AIS, which enables
investment in new and replacement models and components that will increase plant production volumes, sustain
employment and strengthen the automotive value chain.
The department’s clothing and textile production incentive is geared towards creating and stabilising employment,
increasing added value, and improving local and global competitiveness in the clothing and textile value chain.
Projected expenditure on the clothing and textile production incentive over the medium term is R2.6 billion,
funded in the Industrial Development Programme.
Strengthening export capabilities
To increase support to South African exporters accessing new markets in Africa and abroad and for diversifying
South African exports, R150 million has been reprioritised over the medium term from incentives to the interest
make-up scheme of the Export Credit Insurance Corporation (ECIC) in the Trade and Investment Programme. In
addition, the department will assist 3 290 companies financially to strengthen their export capabilities. Spending
on this financial assistance is projected at R752.5 million over the medium term in the Incentive Development and
Administration Programme.
Industrial infrastructure investment
The department’s infrastructure spending is aimed at promoting industrialisation that is more effectively
distributed geographically. Expenditure on infrastructure is projected at R4.2 billion over the medium term, funded
in the Infrastructure Investment Support sub-programme in the Incentive Development and Administration
Programme. There are two industrial infrastructure investment initiatives: the SEZs, and the Critical Infrastructure
Programme (CIP).
The SEZs are geographically designated, purpose built industrial estates aimed at leveraging domestic and
foreign fixed direct investment in value added and export oriented manufacturing industries and services. There
are several categories of SEZs: IDZs, free ports, free trade zones and sector development zones. The main
policy shift in funding SEZs, as provided for in the SEZs Act (2014), is from funding operators to funding bulk and
shared infrastructure, based on specific investments by domestic and foreign investors. There are presently five
SEZs: Coega and East London in the Eastern Cape, Saldanha Bay in the Western Cape, and Richards Bay and
Dube Trade Port in KwaZulu-Natal. The department plans to designate and roll out 10 new SEZs in all nine
provinces. Prefeasibility and feasibility studies for the zones will be concluded in 2015/16. The department will
provide multi-year funding for each zone, the bulk of which will be used for infrastructure, site preparation and
infrastructure for shared services, such as ICT and water and waste management.
The department supports critical infrastructure projects (meaning projects without which investment would not
take place or the investment would not operate optimally). In line with the industrial policy action plan, this
support is mostly for projects in mining, tourism, manufacturing and the utility services. Over the medium term, 40
critical infrastructure projects, outside the IDZs, will be supported at a projected total cost of R579.5 million,
through the critical infrastructure programme in the Incentive Development and Administration Programme.
33
Localisation
The department’s work on industrial policy focuses over the medium term on increasing local products and
materials in what government procures, in line with government’s 2014-2019 medium term strategic framework
localisation target. The department will continue to research, develop and support the designation of industries,
sectors and sub-sectors which will produce their products at a specified level of local content. The department
aims to make four designation requests to the Minister of Trade and Industry per year over the medium term.
Expenditure on this localisation work is projected at R6.2 billion over the medium term, within the Industrial
Development Programme.
34
Trade and Industry
2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18
Audited
outcome
Audited
outcome
Audited
outcome
Budget Medium-term estimates
Administration 628 671 695 900 686 918 695 616 689 740 720 145 763 734
International Trade
and Economic
Development 132 920 132 705 139 566 147 197 164 754 172 530 180 838
Special Economic
Zones and Economic
Transformation 213 167 237 458 244 051 307 126 263 224 279 013 285 312
Industrial
Development 1 326 197 1 518 071 1 591 182 1 792 459 1 973 534 2 045 338 2 143 330
Consumer and
Corporate Regulation 218 564 223 568 256 698 277 256 294 496 306 963 321 887
Incentive
Development and
Administration 3 242 136 4 387 296 5 101 863 5 120 259 5 795 639 6 554 193 5 369 264
Trade and
Investment South
Africa 303 846 249 845 320 470 346 969 412 328 427 132 444 821
-
-
- - - -
-
Total 6 065 501 7 444 843 8 340 748 8 686 882 9 593 715 10 505 314 9 509 186
Current payments 1 090 640 1 188 766 1 392 488 1 440 957 1 475 675 1 543 353 1 630 724
Compensation of
employees 526 688 623 456 734 012 847 976 897 730 950 311 1 007 778
Salaries and wages 467 858 553 897 655 699 760 063 796 226 842 323 893 693
Social contributions 58 830 69 559 78 313 87 913 101 504 107 988 114 085
Goods and services 563 879 564 823 658 476 592 981 577 945 593 042 622 946
Administrative fees 6 488 4 226 5 243 7 468 6 228 6 263 6 526
Advertising 31 955 29 208 41 374 31 226 31 708 32 595 33 955
Assets less than the
capitalisation
threshold 500 666 272 1 606 523 561 567
Audit costs: External 8 591 9 095 8 123 15 580 11 535 9 168 9 286
Bursaries: Employees 2 398 2 326 1 392 1 585 1 848 1 923 2 027
Catering:
Departmental
activities 4 434 4 207 5 618 3 530 4 414 4 919 5 127
Communication
(G&S) 10 355 10 709 10 561 13 620 12 922 12 530 13 118
Computer services 17 607 17 155 18 318 17 923 20 044 19 079 18 740
35
Trade and Industry
2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18
Audited
outcome
Audited
outcome
Audited
outcome
Budget Medium-term estimates
Consultants and
professional services:
Business and
advisory services 40 521 33 801 38 293 62 704 61 664 55 214 61 917
Consultants and
professional services:
Infrastructure and
planning -
-
- - - -
-
Consultants and
professional services:
Laboratory services -
-
- - - -
-
Consultants and
professional services:
Scientific and
technological services -
-
- 3 - -
-
Consultants and
professional services:
Legal costs 16 404 9 754 10 536 9 035 9 830 10 666 10 793
Contractors 19 177 28 140 19 221 18 620 14 164 15 927 17 411
Agency and support /
outsourced services 4 805 220 762 2 751 3 394 3 468 3 746
Entertainment 1 100 1 303 1 917 1 177 1 159 1 302 1 365
Fleet services
(including
government motor
transport) 306
390
545
653 807
847
767
Housing -
-
- - - -
-
Inventory: Clothing
material and
accessories -
-
-
42 - -
-
Inventory: Farming
supplies -
-
- - - -
-
Inventory: Food and
food supplies -
-
- - - -
-
Inventory: Fuel, oil
and gas -
1
-
277 - -
-
Inventory: Learner
and teacher support
material -
-
- - - -
-
36
Trade and Industry
2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18
Audited
outcome
Audited
outcome
Audited
outcome
Budget Medium-term estimates
Inventory: Materials
and supplies 421
422
-
538 - -
-
Inventory: Medical
supplies
2
-
- - - -
-
Inventory: Medicine
32
-
- - - -
-
Medsas inventory
interface -
-
- - - -
-
Inventory: Other
supplies 1 008
777
- 1 034 - -
-
Consumable supplies -
3 1 713 2 354 2 474 3 126 3 188
Consumable:
Stationery, printing
and office supplies 14 800 10 454 11 664 14 138 13 457 12 968 13 979
Operating leases 199 447 217 706 276 979 196 394 201 222 201 645 212 382
Property payments 20 593 12 763 8 055 19 567 17 615 26 344 27 688
Transport provided:
Departmental activity -
-
- 40 10 29
29
Travel and
subsistence 93 607 100 161 110 709 98 510 99 346 109 808 110 001
Training and
development 16 121 15 624 9 164 11 210 12 889 12 229 12 886
Operating payments 24 025 20 421 33 048 26 624 30 586 28 608 32 157
Venues and facilities 29 182 35 291 44 798 34 622 19 956 23 667 25 127
Rental and hiring -
-
171
150 150 156
164
Interest and rent on
land
73
487
- - - -
-
Interest (Incl. interest
on unitary payments
(PPP))
73
487
- - - -
-
Rent on land -
-
- - - -
-
Transfers and
subsidies 4 903 963 6 133 868 6 929 501 7 222 304 8 083 878 8 928 699 7 843 622
Provinces and
municipalities -
-
- - - -
-
Provinces -
-
- - - -
-
37
Trade and Industry
2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18
Audited
outcome
Audited
outcome
Audited
outcome
Budget Medium-term estimates
Provincial Revenue
Funds -
-
- - - -
-
Provincial agencies
and funds -
-
- - - -
-
Municipalities -
-
- - - -
-
Municipal bank
accounts -
-
- - - -
-
Municipal agencies
and funds -
-
- - - -
-
Departmental
agencies and
accounts 497 085 533 425 639 895 724 278 761 528 784 809 855 793
Social security funds -
-
- - - -
-
Departmental
agencies (non-
business entities) 497 085 533 425 639 895 724 278 761 528 784 809 855 793
Higher education
institutions 14 800 32 600 12 830 15 751 12 474 13 135 13 792
Foreign governments
and international
organisations 40 172 37 344 36 737 34 612 31 738 33 585 34 523
Public corporations
and private
enterprises 4 295 284 5 445 518 6 140 913 6 325 465 7 131 597 7 956 512 6 799 523
Public corporations 1 772 339 1 927 311 1 634 397 1 383 728 1 519 798 1 593 965 1 642 129
Subsidies on
products and
production (pc) -
-
- - - -
-
Other transfers to
public corporations 1 772 339 1 927 311 1 634 397 1 383 728 1 519 798 1 593 965 1 642 129
Private enterprises 2 522 945 3 518 207 4 506 516 4 941 737 5 611 799 6 362 547 5 157 394
Subsidies on
products and
production (pe) 2 162 919 3 119 507 3 965 998 4 511 737 5 123 972 5 861 655 4 631 457
Other transfers to
private enterprises 360 026 398 700 540 518 430 000 487 827 500 892 525 937
Non-profit institutions 53 000 80 168 94 784 120 448 144 078 138 107 137 352
Households 3 622 4 813 4 342 1 750 2 463 2 551 2 639
38
Trade and Industry
2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18
Audited
outcome
Audited
outcome
Audited
outcome
Budget Medium-term estimates
Social benefits 1 521 1 631 1 410 - 800
800
800
Other transfers to
households 2 101 3 182 2 932 1 750 1 663 1 751 1 839
Payments for capital
assets 35 312 40 078 17 595 23 621 34 162 33 262 34 840
Buildings and other
fixed structures -
-
- - - -
-
Buildings -
-
- - - -
-
Other fixed structures -
-
- - - -
-
Machinery and
equipment 18 959 36 215 10 980 11 910 24 103 23 209 24 252
Transport equipment 514 2 321 500 - 1 050
500
500
Other machinery and
equipment 18 445 33 894 10 480 11 910 23 053 22 709 23 752
Heritage assets -
-
- - - -
-
Specialised military
assets -
-
- - - -
-
Biological assets -
-
- - - -
-
Land and sub-soil
assets -
-
- - - -
-
Software and other
intangible assets 16 353 3 863 6 615 11 711 10 059 10 053 10 588
Payments for
financial assets 35 586 82 131 1 164 - - -
-
Total economic
classification 6 065 501 7 444 843 8 340 748 8 686 882 9 593 715 10 505 314 9 509 186
(The above information is extracted from the ENE 2015)
39
Part B: Strategic Objectives and Programme Description
11 Strategic objectives
the dti has identified three key strategic objectives to achieve the goals of the department. Programmes 2, 3, 4,
6, 7 contribute in various ways to deepen industrialisation through increased growth in the manufacturing sector
and are measured by the strategic objective “grow the manufacturing sector to promote industrial development,
job creation, investment and exports”. Programmes 1 and 5 have specific strategic objectives “strengthened
capacity to deliver on the dti mandate” and “improved conditions for consumers, artists and opening up of
markets for new patents players”. Each strategic objective is measurable and has performance indicators with
technical indicator descriptors that are contained in Annexure A of this document.
11.1 Programme 1: Administration
a) Purpose: Provide strategic leadership, management and support services to the department, and
conduct research on industrial development, growth and equity.
b) Description of Sub-Programmes:
(i) The Ministry provides leadership and policy direction to the dti;
(ii) The Office of the Director-General (ODG) provides overall management of the dti’s resources;
(iii) Corporate Services provides customer-centric and integrated resource solutions in human
resource management, information and communication technology (ICT), legal services and
facilities management;
(iv) Office Accommodation is an allocation for accommodation services to the dti regional offices
and ensures continued maintenance service;
(v) Financial Management provides support to the dti, with respect to financial resource allocation
and the management thereof, to aid the fulfilment of the department’s goals and objectives;
(vi) Marketing, Communication and Stakeholder Engagement facilitates greater awareness of the
department’s role and increases the uptake of its products and services through improvement of
the customer touch points and ensuring strong customer relationship management; and creates
consumer awareness and educational campaigns to ensure a meaningful understanding of the
department’s offerings; and
(vii) Media and Public Relations ensure that the department’s image is visible by improving media
relations management and public relations activities.
40
c) Strategic objective
Strategic Objective Strengthened capacity to deliver on the dti mandate
Objective Statement Effective implementation and review of the Human Resource plans to ensure that
the department has requisite skill and capacity to fulfil its legislative mandate with a
vacancy rate of 5%.
Baseline Vacancy rate: 6.9%
Linkage to Strategic
Goal
Create a professional, competitive and customer-focused working environment that
ensures effective and efficient service delivery
d) Resource Considerations
The spending focus over the medium term will continue to be on providing high quality corporate management
services support to the department through sustainable and integrated resource solutions and services. Thus,
expenditure on goods and services and compensation of employees will continue to drive spending, led by the
Corporate Services and the ODG sub programmes to ensure operational efficiency. The bulk of the allocation for
goods and services is for operating leases, professional services and travel and subsidies. Further details are
captured under paragraph 8.3 Organisational Environment and paragraph 11 Financial Forecasting.
e) Risk Management
The Strategic Risks cut across the strategic objectives and are discussed under paragraph 14.
11.2 Programme 2: International Trade and Economic Development
a) Purpose: Build an equitable global trading system that facilitates development by strengthening trade
and investment links with key economies and fostering African development, including regional and
continental integration and development cooperation in line with the New Partnership for Africa’s
Development (NEPAD).
b) Description of Sub-Programmes
(i) International Trade Development facilitates bilateral and multilateral trade relations and
agreements.
(ii) African Economic Development facilitates bilateral and multilateral African trade relations aimed
at deepening regional integration.
41
c) Strategic objective
Strategic Objective Grow the Manufacturing sector to promote industrial development, job
creation, investment and exports.
Objective Statement Develop policies, strategies and programmes focussed on manufacturing and other
value-adding sectors to enable competitiveness, job creation and sustained growth
Baseline Sixth iteration of IPAP
Linkage to Strategic
Goal
Facilitate transformation of the economy to promote industrial development,
investment, competitiveness and employment creation
d) Resource Considerations
The spending focus over the medium term will be on developing international trade relations and facilitating
African economic development initiatives to build mutually beneficial regional and global relations to advance
South Africa’s trade, industrial policy and economic development objectives. This accounts for the significant
spending over the medium term on compensation of employees, transfers to international bodies, and travel and
subsistence. Further details are captured under paragraph 11 Financial Forecasting.
e) Risk Management
The strategic risks cut across the strategic objectives and are discussed under paragraph 14.
11.3 Programme 3: Special Economic Zones and Economic Transformation
a) Purpose: To drive economic transformation and increase participation in industrialisation.
b) Description of Sub-Programmes
(i) Enterprise Competitiveness fosters and stimulates industrialisation and structural change
through the development and deployment of technologies and skills development programmes.
(ii) Equity and Empowerment promotes B-BBEE and real growth of the economy through the Black
Industrialists Programme.
(iii) Spatial Industrial Economic Development (SEZs) promotes the regional economy towards a
more spatially balanced economy through the development of policies, strategies and
programmes; SEZs, Clusters and Incubators amongst other things.
42
c) Strategic objective
Strategic Objective Grow the Manufacturing sector to promote industrial development, job
creation, investment and exports.
Objective Statement Develop policies, strategies and programmes focussed on manufacturing and other
value-adding sectors to enable competitiveness, job creation and sustained growth
Baseline Sixth iteration of IPAP
Linkage to Strategic
Goal
Facilitate transformation of the economy to promote industrial development,
investment, competitiveness and employment creation
d) Resource Considerations
The spending focus over the medium term will be on Enterprise Competitiveness, promoting B-BBEE and real
growth of the economy through the Black Industrialists Programme and focus on spatial industrial economic
development.
e) Risk Management
The strategic risks cut across the strategic objectives and are discussed under paragraph 14.
11.4 Programme 4: Industrial Development
a) Purpose: To design and implement policies, strategies and programmes to strengthen the ability of
manufacturing and other sectors of the economy, to create decent jobs and increase value addition and
competitiveness in both domestic and export markets.
b) Description of Sub-Programmes
(i) Industrial Competitiveness develops policies, strategies and programmes to strengthen the
ability of manufacturing and other value-adding sectors to create decent jobs and increase
value-addition and competitiveness in domestic and export markets, as set out in the annual
three-year rolling IPAP.
(ii) Customised Sector Programmes develops and implements high-impact sector strategies
focused on manufacturing and other value-adding sectors to create decent jobs and increase
value-addition and competitiveness in domestic and export markets, as set out in the annual
three-year rolling IPAP.
43
c) Strategic objective
Strategic Objective Grow the Manufacturing sector to promote industrial development, job
creation, investment and exports.
Objective Statement Develop policies, strategies and programmes focussed on manufacturing and other
value-adding sectors to enable competitiveness, job creation and sustained growth.
Baseline Sixth iteration of IPAP
Linkage to Strategic
Goal
Facilitate transformation of the economy to promote industrial development,
investment, competitiveness and employment creation
d) Resource Considerations
The spending focus over the medium term will continue to be on strengthening the manufacturing and other value
added sectors, such as clothing and textiles, metals, and pharmaceuticals, which generate employment and
increased value in domestic and international markets. This will be done by implementing the key action
programmes of the annual three-year rolling industrial policy action plan. Further details are captured under
paragraph 11 Financial Forecasting.
e) Risk Management
The strategic risks cut across the strategic objectives and are discussed under paragraph 14.
11.5 Programme 5: Consumer and Corporate Regulation
a) Purpose: Develop and implement coherent, predictable and transparent regulatory solutions that
facilitate easy access to redress and efficient regulation for economic citizens.
b) Description of Sub-Programmes
(i) Policy and Legislative Development develops policies, laws and regulatory frameworks.
(ii) Enforcement and Compliance conducts trend analyses, impact assessments and market
surveys, and monitors the effectiveness of regulation.
(iii) Regulatory Services executes oversight of and transfers funds to the following regulatory
agencies: the National Consumer Tribunal, the National Credit Regulator, the National Gambling
Board, the National Consumer Commission, the Companies and Intellectual Property Commission
and the Companies Tribunal. The department exercises oversight of, but does not transfer funds
to: the National Lotteries Board, which regulates the lotteries sector and facilitates the distribution
of lottery funds to worthy organisations that serve the public interest; and the Takeover Regulation
Panel and the Financial Reporting Standards Council, which are responsible for regulating
applicable transactions and issuing standards.
44
c) Strategic objective
Strategic Objective Improved conditions for consumers, artists and opening up of markets for new
Patents players
Objective Statement To provide for harmonisation of IP laws, access to medicine and education,
distribution of royalties and redress for artists
Baseline Four Bills developed
Linkage to Strategic
Goal
Create an enabling environment which is conductive to both consumers and business
and remove the unnecessary regulatory burden which negatively impacts on the
economy
d) Resource Considerations
The spending focus over the medium term will be on upholding the quality of standards for businesses and
consumers by making significant transfers to the departmental agencies through the Regulatory Services sub
programme. Further details are captured under paragraph 11 Financial Forecasting.
e) Risk Management
The strategic risks cut across the strategic objectives and are discussed under paragraph 14.
11.6 Programme 6: Incentive Development and Administration
a) Purpose: Stimulate and facilitate the development of sustainable, competitive enterprises through the
efficient provision of effective and accessible incentive measures that support national priorities.
b) Description of Sub-Programmes
(i) Broadening Participation Incentives provide incentive programmes that promote broader
participation in the mainstream economy by businesses owned by individuals from historically
disadvantaged communities and marginalised regions.
(ii) Manufacturing Incentives provides incentives to promote additional investment in the
manufacturing sector. The manufacturing investment cluster comprises the following programmes
and schemes: the Manufacturing Competitive Enhancement Programme, the Capital Projects
Feasibility Programme, the Automotive Investment Scheme, the Export Marketing and Investment
Assistance scheme, the Sector Specific Assistance Scheme and the Section 12I tax incentive
scheme.
(iii) Services Investment Incentives provides incentive programmes that promote increased
investment and job creation in the services sector. The programmes include the Business Process
Services Programme, and the Film and Television Production Incentive Support Programme for
South African and foreign productions.
45
(iv) Infrastructure Investment Support provides infrastructure support that enables investment and
industrial development thereby increasing the export value added commodities and creating
employment opportunities.
(v) Product and Systems Development reviews, monitors and develops incentive programmes to
support the IPAP, and develops sector strategies to address market failures.
(vi) Strategic Partnership and Customer Care facilitates access to targeted enterprises by reviewing
the success of incentive schemes and improving such schemes.
c) Strategic objective
Strategic Objective Grow the Manufacturing sector to promote industrial development, job
creation, investment and exports.
Objective Statement Develop policies, strategies and programmes focussed on manufacturing and other
value-adding sectors to enable competitiveness, job creation and sustained growth
Baseline Sixth iteration of IPAP
Linkage to Strategic
Goal
Facilitate transformation of the economy to promote industrial development,
investment, competitiveness and employment creation
d) Resource Considerations
The spending focus over the medium term will be on promoting activities through the provision of manufacturing
development incentives to stimulate additional investment in the manufacturing sector, resulting in increased
output and employment. Further details are captured under paragraph 11 Financial Forecasting.
e) Risk Management
The strategic risks cut across the strategic objectives and are discussed under paragraph 14.
46
11.7 Programme 7: Trade and Investment South Africa
a) Purpose: Increase export capacity and support direct investment flows through an effectively managed
network of foreign trade offices and strategies for targeted markets.
b) Description of Sub-Programmes
(i) Investment Promotion and Facilitation facilitates the increase in the quality and quantity of
foreign and domestic direct investment by providing investment, recruitment, problem-solving
and information services.
(ii) Export Promotion and Marketing promotes exports of South African value-added goods and
services to increase market share in targeted high-growth markets and sustain market share in
traditional markets.
(iii) Trade and Investment South Africa Executive Management Unit promotes trade and
investment, and administers and provides corporate services to the department’s foreign office
network of foreign economic representatives in various countries to enable South African
businesses to access global markets.
(iv) Export Development and Support manages the National Exporter Development Programme
(NEDP), which is designed to contribute to positioning South Africa as a reliable trade partner
and improve and expand the country’s exporter base.
c) Strategic objectives
Strategic Objective Grow the Manufacturing sector to promote industrial development, job
creation, investment and exports.
Objective Statement Develop policies, strategies and programmes focussed on manufacturing and other
value-adding sectors to enable competitiveness, job creation and sustained growth
Baseline Sixth iteration of IPAP
Linkage to Strategic
Goal
Facilitate transformation of the economy to promote industrial development,
investment, competitiveness and employment creation
d) Resource Considerations
The spending focus over the medium term will be on increasing the quality and quantity of domestic and foreign
direct investment as well as promoting South African value added products in targeted markets. Further details
are captured under paragraph 11 Financial Forecasting.
e) Risk Management
The strategic risks cut across the strategic objectives and are discussed under paragraph 14.
47
Part C: Links to Other Plans
12 Asset Management Plan
Departmental assets are managed in accordance with policies issued by NT and an asset register is maintained
on the Logistical Information System (Logis). A separate system has been implemented apart from Logis to assist
in managing the locations of assets within the department. the dti complied with the minimum requirement of the
Asset Management Reforms, as issued by NT.
13 Information Technology Plan
The department has developed a five-year ICT strategic plan, which will be revised annually to ensure alignment
with the department’s strategy. The focus for the implementation in this period is described below:
13.1 ICT Objectives
The departmental ICT plan is informed by the following objectives:
To provide agile ICT solutions that address business priorities
Provide ICT enablement capabilities for improved information management
Ensure information security, high availability, reliability and performance
Build a skilled, dynamic and cohesive ICT delivery team
To ensure compliance to the ICT Governance Framework
13.2 Information Management
In line with the departmental values, the ICT plan for the medium term will provide the following benefits:
a) Quality Relationships:
Enhanced Accessibility of systems and improved service quality
Enhanced communication and collaboration within the department and external clients
b) Intellectual Excellence:
Skilled and competent employees
Improved information management
c) Operational Excellence:
Modernisation of the dti ICT services
Improved delivery of tasks and activities by internal clients
Enhanced control environment
13.3 Key ICT Projects
To realise the aforementioned benefits, the department will roll-out the following key projects:
48
a) Infrastructure and Governance
Enhance its back-up capability and capacity
Enhance security by implementing a Security Operations Centre, network monitoring systems,
encryption tools (backups and work-stations) and enhanced methods of user state–of-the-art storage
solutions
Facilitate workflow through document management solutions coupled to digital signatures
Refresh the dti Call Centre Infrastructure and integrate Customer Relationship Management (CRM)
System with optimised processes
b) Business Enablement
Implementation of enhanced and modernised incentive management system (IEMS) assisting with
improved business processes and improved validation and verification controls
Implement integrated management reporting
Migration from Novell (IDM) to Microsoft (Active Directory)
Migration from Novell GroupWise to Microsoft (Outlook and Exchange)
14 Strategic Risk Management
the dti continues its commitment to the management of risks and maintaining effective, efficient and
transparent systems of financial, risk management and internal controls. Best practice standards and
methodology, are tailored and applied to address every risk that the dti may be exposed to, ensuring that
risks are managed and/or mitigated to an acceptable level. the dti will continue to ensure that risk is not
only seen as a threat but also as an opportunity to enhance its commitment to continuous improvement.
The department also ensures that efficient and effective controls are in place, followed by continuous
monitoring, reviewing and evaluation of mechanisms aimed at mitigating the identified strategic and
operational risks.
Strategic risks that would impede the achievement of the dti’s strategic objectives and imperatives are
contained in the strategic risk register, which is maintained and actioned by ExBo. Strategic risks
impacting on the dti include, but are not limited to:
negative impact of the downturn in the global economic environment on South Africa's economic growth
and employment potential caused by the stalled global economic recovery;
low demand for South African exports, international investors response to changes to quantitative
easing leading to currency volatility;
the inability to be competitive and domestic shocks to the economy due to sharply administered prices
(electricity, water and port charges), transport, energy and logistic constraints, skills for the economy,
monopolistic pricing of privately owned key intermediate inputs; and
Due to previous negative press on governance issues around the department's entities, there is the
potential for reputational risk due to actions of the entities.
These risks are being adequately managed through, but not limited to, the following mitigating actions:
early warning system-economic intelligence reporting;
49
the prioritisation of African continent as major source of demand (more foreign representatives, more
trade missions going to Africa);
energy efficiency programmes (clean audits) and research studies for alternate energy sources as
well as participation in the electricity war room;
skills development programmes for the country; and
regular engagements with entity/management of entities and collective bargaining clusters in entities.
A strategic risk register is maintained and actioned by ExBo. Risks therein are those that would impede
the achievement of the dti’s strategic objectives and imperatives. Divisions within the department compile
risk registers aligned to divisional operational plans. Divisions update the risk registers every quarter, with
emerging risks and risks from the changing economic and internal environments and the Office of the
Chief Risk Officer reviews the status of action plans quarterly. The updated risk registers together with the
progress of action plans are discussed at the quarterly Risk Management Committee (RMC). The RMC is
chaired by the Group Chief Operations Officer and attended by all COOs, the CFO, CRO, CIO, and CD:
Legal, Internal Audit as well as an external member of the Audit Committee.
There is also a strong focus on ethics and fraud awareness. the dti is committed to zero-tolerance for
fraud and corruption. The fraud prevention policy, strategy and plan, assists in driving different initiatives
to ensure that employees of the dti are encouraged to report any suspicious activities.
To further assist and enhance the ethical culture in the department, there is a dedicated Ethics Officer,
who champions the ethics mandate in the department. All employees are required to obtain approval to
perform any remunerative work outside the public service and disclose all business interests. The Ethics
Committee, assisted by the Ethics Officer, assesses all applications for Remunerative Work Outside the
Public Service. The Committee members scrutinise all applications to ensure there are no conflicts of
interest before approval can be granted by the Director-General.
15 Service Delivery Improvement Plan
The approved departmental 2012-2015 Service Delivery Improvement Plan (SDIP) is in place and
implementation is reported annually to the Department of Public Service and Administration (DPSA). A Service
Delivery Charter will be reviewed to be aligned to new the dti values. The 2015-2018 SDIP will be developed for
implementation.
50
16 Public Entities Reporting to the Minister
Name of the Public Entity Enabling Legislation Mandate and Purpose
1. Companies and Intellectual Property
Commission (CIPC)
Companies Act, 2008
(Act No.71 of 2008), as
amended
CIPC was established by the
Companies Act, 2008 (Act No. 71 of
2008) as a juristic person to function as
an organ of state within the public
administration, but as an institution
outside the public service. The main
functions of the Commission are the:
Registration of Companies, Co-
operatives and Intellectual Property
Rights (trademarks, patents,
designs and copyright) and
maintenance thereof;
Disclosure of Information on its
business registers;
Promotion of education and
awareness of Company and
Intellectual Property Law;
Promotion of compliance with
relevant legislation;
Efficient and effective enforcement
of relevant legislation;
Monitoring compliance with and
contraventions of financial
reporting standards, and making
recommendations thereto to
Financial Reporting Standards
Council (FRSC);
Licensing of Business rescue
practitioners; and
Report, research and advise the
Minister on matters of national
policy relating to company and
intellectual property law.
2. Export Credit Insurance Corporation
(ECIC)
Export Credit and Foreign
Investments Insurance
Act, 1957 (Act No. 78 of
1957)
ECIC is established by Export Credit
and Foreign Investment Re-Insurance
Amendment Act, 1957 (Act No. 78 of
1957) as amended.
It promotes trade with countries outside
the Republic by providing for the
51
Name of the Public Entity Enabling Legislation Mandate and Purpose
insurance on behalf of the Government
of the Republic of contracts in
connection with export transactions,
investments and loans or similar
facilities connected with such
transaction, and to provide for matters
connected therewith.
3. National Consumer Commission
(NCC)
Consumer Protection Act,
2008 (Act No.68 of 2008)
The NCC is charged with the
responsibility to enforce and carry out
the functions assigned to it in terms of
the Act, which aims to:
•Promote a fair, accessible and
sustainable marketplace for consumer
products and services, and for that
purpose; establish national norms and
standards relating to consumer
protection; provide for improved
standards of consumer information;
prohibit certain unfair marketing and
business practices; promote
responsible consumer behaviour; and
promote a consistent legislation and
enforcement framework relating to
consumer transactions.
4. National Consumer Tribunal (NCT)
National Credit Act, 2005
(Act No. 34 of 2005), as
amended
The NCT adjudicates any application
that may be made to it, and makes any
order provided for in respect of such an
application; or allegations of prohibited
conduct by determining whether
prohibited conduct has occurred and, if
so, by imposing a remedy. It grants
orders for costs, and can exercise any
other power conferred on it by law. It
also reviews decisions made by the
National Credit Regulator (NCR), the
National Consumer Commission (NCC)
and single-member panels of the
Tribunal. Decisions made by a three-
member panel of the Tribunal may in
turn be taken on appeal or review to the
High Court
5. Companies Tribunal (CT) Companies Act, 2008
(Act No. 71 of 2008), as
The CT adjudicates in relation to any
application that may be made to it in
52
Name of the Public Entity Enabling Legislation Mandate and Purpose
amended terms of this Act, and makes any order
provided for in this Act in respect of
such an application. It also assists in
the resolution of disputes as
contemplated in Part C of Chapter 7 of
the Act; and performs any other
function assigned to it by or in terms of
the Act, or any law mentioned in
Schedule 4.
6. National Credit Regulator (NCR)
National Credit Act, 2005
(Act No. 34 of 2005), as
amended
The NCR promotes a fair and non-
discriminatory marketplace for access
of consumer credit; provides for the
general regulation of consumer credit
and improved standards of consumer
information; promotes black economic
empowerment and ownership within the
consumer credit industry; promotes
responsible credit granting and use;
provides for debt reorganisation in
cases of over indebtedness; regulates
credit information; and provides for
registration of credit providers, credit
bureaus and debt counselling services.
7. National Empowerment Fund (NEF) National Empowerment
Fund Act, 1995 (Act No.
105 of 1995)
Its focus is to promote and facilitate
black economic equality and
transformation. The NEF provides
finance and financial solutions to black
business across a range of sectors, and
structures accessible retail savings
products for black people based on
state-owned equity investments. Its
mandate and mission is to be
Government’s funding agency in
facilitating the implementation of B-
BBEE in terms of the BEE Codes of
Good Practice.
8. National Gambling Board (NGB)
National Gambling Act,
2004 (Act No. 7 of 2004)
The NGB was established to monitor
and investigate when necessary the
issuing of national licences by
provincial licensing authorities. It
establishes and maintains national
registers regarding various gambling
activities.
53
Name of the Public Entity Enabling Legislation Mandate and Purpose
9. National Lotteries Board (NLB)
National Lotteries Act,
1997 (Act No. 57 of 1997)
The NLB monitors and enforces the
implementation of the national lottery. It
manages the National Lottery
Distribution Trust Funds, which
distributes proceeds from its share of
the lottery sales to worthy causes.
10. National Metrology Institute of South
Africa (NMISA)
Measurement Units and
Measurement Standards
Act, 2006 (Act No. 18 of
2006)
NMISA is responsible for realising,
maintaining and disseminating the
International System of Unit (SI). It
maintains and develops primary
scientific standards of physical
quantities for South Africa and
compares those standards with other
national standards to ensure global
measurement equivalence.
11. National Regulator for Compulsory
Specifications (NRCS)
National Regulator for
Compulsory
Specifications Act, 2008
(Act No. 5 of 2008)
NRCS is responsible for the
administration and maintenance of
compulsory specifications and the
implementation of regulatory and
compliance systems for compulsory
specifications.
12. South African Bureau of Standards
(SABS)
Standards Act, 2008
(Act No. 8 of 2008).
It aims to develop, promote and
maintain South African National
Standards; promote quality in
connection with commodities, products
and services; and render conformity
assessment services and matters
connected therewith.
13. South African National Accreditation
System (SANAS)
Accreditation for
Conformity Assessment,
Calibration and Good
Laboratory Practice Act,
2006 (Act No. 19 of
2006).
The aim of SANAS is to accredit or
monitor for Good Laboratory Practice
(GLP) compliance purposes,
organisations falling within its scope of
activity; promote accreditation as a
means of facilitating international trade
and enhancing South Africa’s economic
performance and transformation;
promote competence and equivalence
of accredited bodies; and promote the
competence and equivalence of GLP
compliant facilities.
54
The Small Enterprise Development Agency (seda) established by the National Small Enterprise Act, 1996 has
been transferred to DSBD according to Section 97 of the Constitution of the Republic of South Africa, 1996 upon
proclamation.
17 Public-Private Partnership (PPP)
As part of the Public-Private Partnership (PPP) agreement, the concessionaire will, for the duration of the
contract period, own and maintain assets such as the land, buildings and the majority of the furniture.
Departmental assets excluded from this agreement include departmental vehicles, computer equipment and
certain furniture items.
Name of PPP Purpose Outputs Current value of
agreement
(R thousand)
Date when
agreement
expires
the dti campus
PPP
Fully serviced office
accommodation for
the dti
Design, finance,
build, operate and
transfer of the dti
campus
870 000
(NPV at financial
close)
August 2028
18 Annexure A- Strategic Objectives and Technical Indicator Descriptors
18.1
Strategic Objective
Strengthened capacity to deliver on the dti mandate
Objective Statement Effective implementation and review of the Human Resource Plans to ensure that
the department has requisite skill and capacity to fulfil its legislative mandate with
a vacancy rate of 5%.
Baseline Vacancy rate: 6.9%
Linkage to Strategic Goal Create a professional, competitive and customer-focused working environment
that ensures effective and efficient service delivery
Indicator title Percentage (%) vacancy rate
1. Short definition Vacancy rate of the department
2. Purpose/importance Tracks progress made in filling vacancies. A decrease in this number can be
indicative of either the abolishment of vacancies or the actual filling of them with
external candidates (outside appointments). An increase could be the result of
higher turnover or an increase in establishment.
3. Source/collection of
data
PERSAL reports. [the dti establishment (which should reconcile with the post
establishment on PERSAL); versus the actual number of incumbents as per
PERSAL report (i.e. those that are being paid and holding permanent positions
(compared to contract / additional appointments)]
55
4. Method of calculation % of vacant posts for which budget estimate exists expressed as a fraction of the
total approved positions (excluding positions additional to the establishment,
temporary / interns). (Total establishment - Filled positions) ÷ Total establishment
x 100%.
Type: this is an as-is statistic i.e. a snapshot of filled posts compared against total
establishment.
5. Calculation Type Cumulative
6. Data limitations None
7. Type of indicator Output
8. Reporting cycle Annual
9. Desired performance Target met or exceeded
10. Indicator
responsibility
Programme 1: Administration
18.2
Strategic Objective Grow the Manufacturing sector to promote industrial development, job
creation, investment and exports.
Objective Statement Develop policies, strategies and programmes focussed on manufacturing and
other value-adding sectors to enable competitiveness, job creation and sustained
growth.
Baseline Sixth iteration of IPAP
Linkage to Strategic Goal Facilitate transformation of the economy to promote industrial development,
investment, competitiveness and employment creation
Performance Indicator
title
Indices of the Manufacturing sector (growth of output, investment, jobs and
exports)
1. Short definition Policies, strategies and programmes developed to increase the growth rate of the
manufacturing sector.
2. Purpose/importance Tracks the progress made towards growing the manufacturing sector.
3. Source/collection of
data
Key research (internally or externally) undertaken and progress reports produced.
4. Method of calculation Qualitative and Quantitative
5. Calculation type Calculate annual growth rate of manufacturing output, investment, jobs and
exports.
6. Data limitations Manufacturing data is typically released four to five months after the end of the
relevant quarter. It may be necessary to use estimate data from time to time.
56
18.3
Strategic Objective Improved conditions for consumers, artists and opening up of markets for new
Patents players
Objective Statement To provide for harmonisation of IP laws, access to medicine and education,
distribution of royalties and redress for artists
Baseline Four Bills developed
Linkage to Strategic
Goal
Create an enabling environment which is conductive to both consumers and business
and remove the unnecessary regulatory burden which negatively impacts on the
economy
7. Type of indicator Outcome
8. Reporting cycle Annual
9. Desired performance Target met or Higher
10. Indicator responsibility Programmes 2, 3, 4, 6, 7
Performance Indicator
title
Number of IP Bills developed for amendment and review of Intellectual
Property laws
1. Short definition Development of a number of IP Bills for amendment or review
2. Purpose/importance Draft amendment and review of legislation(s) to close identified gaps in the law
and produce Bill
3. Source/collection of
data
Developed policies for approval
4. Method of calculation Simple count
5. Calculation type Cumulative
6. Data limitations None
7. Type of indicator Output
8. Reporting cycle Quarterly
9. Desired performance Target met or higher
10. Indicator responsibility Programme 5: CCRD
57